A day after the Union Budget proposed to launch India's own digital rupee, Prime Minister Narendra Modi on Wednesday listed the virtues of such a currency that will be fully backed by the Reserve Bank of India and hence it will be legal tender.
He said the central bank digital currency or the digital rupee will make online payments more secure and risk-free and boost the digital economy in the years to come.
Speaking on the broad contours of the Budget, which he said could not be fully read out in such a short slot allocated in Parliament, he said the digital rupee will create new opportunities and lessen the burden in handling, printing, logistics management of cash.
Modi said it will also revolutionise the fintech sector.
"The digital rupee will be the digital form of our physical rupee and will be regulated by the RBI. This will be such a system that will enable an exchange of physical currency with digital currency," Modi said at the virtual meeting of party workers and chief ministers of BJP-ruled states.
The RBI is expected to launch the digital currency from the financial year 2022-23. According to the Union Budget, it will be backed by blockchain technology.
The Prime Minister said the Central Bank Digital Currency (CBDC) will strengthen the digital economy. If anyone makes a payment in digital currency, he or she will be able to change it to cash.
It will make online payments and transfers risk-free and more secure.
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